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Posted on Sep 27, 2024

w 08 Basic Options Concepts - HANDOUT_5-2,3 [Compatibility Mode] Q- Search in Document Home Insert Design Layout References Mailings Review View + Share A -A-

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w 08 Basic Options Concepts - HANDOUT_5-2,3 [Compatibility Mode] Q- Search in Document Home Insert Design Layout References Mailings Review View + Share A -A- A- AS abc A A AT da BhCcDdEx AaBbCcDdE AaBbCcDdE AaBbCcDc AaBbCcDc AaBbCcDdEe No Spacing Heading 1 Title Paste BIU U abe abe X2 X2 A A A Normal Subtitle Subtle Emph... Styles Pane Activate Office to Create and Edit Buy Office or sign in to activate Office if you've already bought it. Activate Basic Options Concepts - Handout 5-2,3 HO5-2. Explain the differing offer prices of ANZ put options with exercise prices of $25.50 and different expiry dates. The following options quotations were downloaded from: https://www.asx.com.au/asx/markets/optionPrices.do?by=underlyingCode&und erlyingCode=ANZ&expiry Date=&optionType=B on 19/11/2019. Use labelled diagrams to show that they conform to theory in questions 2 and 3. Shares 19/11/2019 Code ANZ Last 25.420 $+/- %Chg 0.12 0.47% Bid Offer Open High 25.4 25.42 25.3 25.42 Low 25.2 Volume 6,036,835 Options (Show Open Interest only) HO5-3. Explain why the offer prices of ANZ call options with exercise prices of $18.01,25.50 and 28.00 are successively lower. Expiry Open Code P/C Exercise Bid Offer Last Volume Margin Price date interest ANZLFZ 21/11/2019 Call 25.500 0.145 0.145 0 40 0.125 ANZSI8 28/11/2019 Call 0.01 25.42 25.42 0 0 40 25.295 ANZRR8 28/11/2019 Call 25.500 0.225 0.225 0 1,832 0.19 ANZMOZ 19/12/2019 Call 18.010 7.425 7.425 0 19 7.305 ANZSH9 19/12/2019 Call 25.500 0.380 0.380 0 644 0.355 ANZFY7 19/12/2019 Call 28.000 0.001 0.001 0 1,670 0.004 ANZN6930/01/2020 Call 25.500 0.605 0.605 0 20 39 0.555 ANZZH9 27/02/2020 Call 25.500 0.730 0.730 0 64 0.685 ANZT87 26/03/2020 Call 25.500 0.875 0.875 0.875 0.75 14 150 0.815 ANZE69 25/06/2020 Call 25.500 1.055 1.055 0 805 0.995 ANZLG7 21/11/2019 Put 25.500 0.150 0.150 0 120 0.27 ANZRS8 28/11/2019 Put 25.500 0.290 0.290 0.325 73 880 0.37 ANZFK8 19/12/2019 Put 18.000 0.000 0.000 0 0 120 0 ANZSI9 19/12/2019 Put 25.500 0.465 0.465 0 0 647 0.55 ANZVZ9 19/12/2019 Put 28.010 2.590 2.590 0 714 2.71 ANZN79 30/01/2020 Put 25.500 0.640 0.640 0 844 0.705 ANZZI9 27/02/2020 Put 25.500 0.760 0.760 0.81 70 60 0.83 ANZT97 26/03/2020 Put 25.500 0.885 0.885 0 220 0.975 ANZE79 25/06/2020 Put 25.500 1.570 1.570 0 4,700 1.635 Page 1 of 2 71 Words English (AUS) + w 08 Basic Options Concepts - HANDOUT_5-2,3 [Compatibility Mode] Q- Search in Document Home Insert Design Layout References Mailings Review View + Share A -A- A- AS abc A A AT da BhCcDdEx AaBbCcDdE AaBbCcDdE AaBbCcDc AaBbCcDc AaBbCcDdEe No Spacing Heading 1 Title Paste BIU U abe abe X2 X2 A A A Normal Subtitle Subtle Emph... Styles Pane Activate Office to Create and Edit Buy Office or sign in to activate Office if you've already bought it. Activate Basic Options Concepts - Handout 5-2,3 HO5-2. Explain the differing offer prices of ANZ put options with exercise prices of $25.50 and different expiry dates. The following options quotations were downloaded from: https://www.asx.com.au/asx/markets/optionPrices.do?by=underlyingCode&und erlyingCode=ANZ&expiry Date=&optionType=B on 19/11/2019. Use labelled diagrams to show that they conform to theory in questions 2 and 3. Shares 19/11/2019 Code ANZ Last 25.420 $+/- %Chg 0.12 0.47% Bid Offer Open High 25.4 25.42 25.3 25.42 Low 25.2 Volume 6,036,835 Options (Show Open Interest only) HO5-3. Explain why the offer prices of ANZ call options with exercise prices of $18.01,25.50 and 28.00 are successively lower. Expiry Open Code P/C Exercise Bid Offer Last Volume Margin Price date interest ANZLFZ 21/11/2019 Call 25.500 0.145 0.145 0 40 0.125 ANZSI8 28/11/2019 Call 0.01 25.42 25.42 0 0 40 25.295 ANZRR8 28/11/2019 Call 25.500 0.225 0.225 0 1,832 0.19 ANZMOZ 19/12/2019 Call 18.010 7.425 7.425 0 19 7.305 ANZSH9 19/12/2019 Call 25.500 0.380 0.380 0 644 0.355 ANZFY7 19/12/2019 Call 28.000 0.001 0.001 0 1,670 0.004 ANZN6930/01/2020 Call 25.500 0.605 0.605 0 20 39 0.555 ANZZH9 27/02/2020 Call 25.500 0.730 0.730 0 64 0.685 ANZT87 26/03/2020 Call 25.500 0.875 0.875 0.875 0.75 14 150 0.815 ANZE69 25/06/2020 Call 25.500 1.055 1.055 0 805 0.995 ANZLG7 21/11/2019 Put 25.500 0.150 0.150 0 120 0.27 ANZRS8 28/11/2019 Put 25.500 0.290 0.290 0.325 73 880 0.37 ANZFK8 19/12/2019 Put 18.000 0.000 0.000 0 0 120 0 ANZSI9 19/12/2019 Put 25.500 0.465 0.465 0 0 647 0.55 ANZVZ9 19/12/2019 Put 28.010 2.590 2.590 0 714 2.71 ANZN79 30/01/2020 Put 25.500 0.640 0.640 0 844 0.705 ANZZI9 27/02/2020 Put 25.500 0.760 0.760 0.81 70 60 0.83 ANZT97 26/03/2020 Put 25.500 0.885 0.885 0 220 0.975 ANZE79 25/06/2020 Put 25.500 1.570 1.570 0 4,700 1.635 Page 1 of 2 71 Words English (AUS) +